Thailand's spectacular beach destinations and high tourist visitation numbers have attracted many foreigners to invest in this popular country. However, in order to buy a house in Thailand, you need to be aware of certain important facts first.
Buying a property overseas can seem daunting. To make the process easier here are some important guidelines that will simplify navigating through your property investment journey in Thailand. Investing in Thailand real estate without properly looking up the legalities first can lead to unfavorable results, however, if done with due diligence, property investment in Thailand can be an incredibly rewarding experience.
How Difficult is it to Buy Property in Thailand?
It is important to mention that foreigners cannot buy Thailand property as such, but they can buy apartments and condominium units. They are only allowed a maximum of 40% of the condominium unit’s ownership. That said, a foreigner is legally allowed to purchase a Thailand house except for the land on which it is built. There are certain exceptions to this rule if the following criteria are met:
-If a foreigner buys Thailand real estate, a Thailand house's ownership can be registered and transferred separately from the land where the house in question has been built.
-The said transfer procedure should comply with the Thailand Civil and Commercial Code.
-The transfer should be documented in written form.
-The transfer needs to be registered with the Land Department's provincial office or branch.
If the owner puts up their house for sale in Thailand, then they, along with the buyer, must strictly comply with the Land Office's standard procedure otherwise, the property in question will still be legally owned by the developer or third party to whom the land belongs to. These are serious legalities that you must remember when you buy a house in Thailand.
Guidelines for Buying a House in Thailand
Ascertain your Purpose of Investment
Before you start your property search it is vital that you determine the purpose of your property investment. Whether you are buying purely for investment, as a holiday home, or a mix of both, you must know the property's potential. The property location, the expected rental yield, and ease of resale in the future are crucial things to consider before you proceed.
Undertake Preliminary Research
Once you are clear on your purpose of investment it is important to conduct preliminary research. Call some reputed real estate agents and get a viewing. You can also scout popular property portals and local classifieds to know about the local market trends.
Survey the local area, and if possible personally go around the area and see the properties available for sale. Get an idea of the infrastructure, essential amenities, and connectivity. Also understand the terms of the property. Is it a leasehold or freehold ownership? It is furnished? Are the taxes and utility costs shared? These are certain points you should know about the property before proceeding.
Carry out a Proper Diligence Check
When you are ready to buy a house in Thailand you must carry out a title search on the concerned property as recorded at the Land Department first.
One of the most important aspects of this search is the necessary diligence checks. You must ascertain if the seller truly owns the land legally or holds any outstanding mortgages, debts, or leases on the property which have not yet been cleared. If you are good with keywords, your title search should also tell you whether the property in question obeys the zoning and environmental regulations or not.
If you are good with keywords, your title search should also tell you whether the property in question obeys the zoning and environmental regulations or not. It is not humanly possible to carry out such a check without an experienced lawyer or legal consultant's assistance. Thus, you should hire one as soon as possible.
Hiring a Thai Property Lawyer
Foreigners are often, understandably, not well-acquainted with the finer details of the Thai legal system. Preferably, you should hire a lawyer whose area of specialization is foreign investment. He or she should carefully examine and approve every deposit you carry out and every contract you sign.
Setting up your own Thai Company
As per Thai laws a foreigner cannot own land in Thailand. However, there is a method by which foreign investors can rightfully own a built structure in Thailand. This process entails establishing a Thai Limited Company where freehold ownership is authorized to the other shareholders on the foreign buyer’s behalf.
The buyer simply needs to employ a lawyer, pay a small fee, and wait for a few weeks for the processing time. The lawyer then appoints the buyer as a Managing Director of the company as a 49% shareholder of the company, with the remaining shares being held by two Thai shareholders who are not associated with one another. This assures complete authority of the buyer over the company and decisions such as replacing the shareholders, developing, selling, leasing, or transferring the property at any given time that they wish to, is completely at their discretion, giving them full-proof safety and rightful ownership of the property.
Find the Right Developer
If you want to buy a house in Thailand, you should look for developers who offer end-to-end services, from the initial purchase to management and rental management services. As an investor, you will rarely have the time to take care of your house or entertain visitors there especially if you live at a distance.
You should also give preference to developers who value timely delivery and build quality. If your developer delivers the construction later than promised, you will have to suffer from late rental income.
An excellent example of the right kind of developer is Skhai. With their virtues of global standards and local expertise, they offer incredible residences. Moreover, they will earn you great short-term rentals and have a lot of long-term capital value as well. Best of all, Skhai helps you buy property in a location best for you and makes sure that it is well constructed and designed.
With a noble vision of promoting eco-friendly business activities, Skhai gives utmost priority to their customers' needs and comforts.
With the help of Skhai, you can acquire beautifully designed and high-quality constructions of properties in stunning locations. If you choose to get your house constructed yourself, Skhai will help you with the same. Also, they will update you with precise reports along with weekly milestones.
Apart from this, Skhai also offers rental management services like property listing, expert pricing, guest-hosting, hotel-grade housekeeping, and reservations management. As a result, you will be able to have a reliable source of income with virtually no effort on your part.
We hope our guidelines help you successfully buy a house in Thailand and cherish it for countless years to come.